Phone Interview Preparation Sheet First-round phone interviews are generally very predictable, and because they are conducted over the telephone, the interviewer will not be able to tell that you’re referring to reference materials while responding. Thus it makes sense to have this sheet available during the call: 1
FINANCIAL STATEMENTS
3 Financial Statements: a) b) c)
Income Statement Cash Flow Statement Balance Sheet Statement
INCOME STATEMENT
Revenue - COGS Gross Profit - Other Operating Expenses (SG&A etc.) Operating Ope at g Income co e (EBIT) ( ) - Non-operating Expenses (Interest Expense) EBT (Earning Before Tax) - Taxes Net Income CASH FLOW STATEMENT
1. 2. 3.
Cash Flow From Operating Activities Cash Flow From Investing Activities Cash Flow From Financing Activities
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BALANCE SHEET
ASSETS Current Assets Cash & Equivalents Short Term Investments Inventories PP&E (Property Plant & Equipment) TOTAL ASSET LIABILITIES Current Liabilities Accounts Payable Short Term Debt Long Term Debt TOTAL LIABILITIES TOTAL SHAREHOLDER EQUITY ASSETS = LIABILITIES + EQUITY 1
Phone Interview Preparation Sheet – Cont’d First-round phone interviews are generally very predictable, and because they are conducted over the telephone, the interviewer will not be able to tell that you’re referring to reference materials while responding. Thus it makes sense to have this sheet available during the call: 2
VALUATION TECHNIQUES
Enterprise Value = Equity Value (Market Cap.) + Debt – Cash + Preferred Equity + Minority Interest Equity Value = Share Price * Shares Outstanding Valuation Techniques: a) b) c)
DCF Comparable Company Analysis Precedent Transaction Analysis DCF
COMPARABLE COMPANY
Valuing a company based on its Valuing a company based on future cash flows and using a discount rate to value the NPV (Net Present Value) of those cash flows
the valuation of similar companies within the same field
PRECEDENT TRANSACTION
Valuing a company based on past transaction of similar companies within the same field
Multiple: metric used for valuation PE Multiple (Equity Multiple) EBITDA Multiple (Enterprise Value Multiple) Revenue Multiple (Enterprise Value Multiple) CoachingAssembly. All rights reserved. Any unauthorised copying, duplication, reproduction, re-selling, distribution or other commercial use will constitute an infringement of copyright
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Phone Interview Preparation Sheet – Cont’d First-round phone interviews are generally very predictable, and because they are conducted over the telephone, the interviewer will not be able to tell that you’re referring to reference materials while responding. Thus it makes sense to have this sheet available during the call: 3
QUESTIONS
What do Investment Banks do? Provides advisory and due diligence for M&A, Equity and Debt Financing Typical day? Financial modelling, pitch books, due diligence Why Investment Banking? Best learning experience available Why this Bank? Reputation p Exposure to senior ppl Deal flow
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